CJ Logistics has released its financial results for the year ending December 31, 2020, reporting sales of KRW*10,781.1bn, a year-on-year increase of 3.5%. The company reported a gross profit of KRW1,001.2bn, an increase of 2.9% in comparison to 2019. Operating profit also grew by 5.9% to KRW325.3bn.
The Parcel division’s revenues boomed whilst both the Contract Logistics and Global divisions struggled with revenues and gross profits showing y-o-y declines.
The Contract Logistics division reported sales decreased by 6.0% to KRW2,567bn. Gross profit decreased by 4.1% to KRW261.9bn. The company’s Global division reported sales of KRW4,385.1bn, a decrease of -1.3% y-o-y. Gross profit fell by 13.9% to KRW337.2bn y-o-y. The Parcel division’s sales saw an increase of 26.1% to KRW3,156.4 The company reported a gross profit of KRW329.1bn, a y-o-y increase of 38.4%. The growth has been attributed to the growth in e-commerce, as Parcel volume increased rapidly (27.9% y-o-y) due to the sharp increase of the e-commerce market amid the pandemic situation.
For the fourth quarter ending December 31, 2020 sales were up marginally (0.6% y-o-y) at KRW2,841.3 from KWR2,825.7 in 2019. Parcel sales were up by 24.6%, however, CL and Global revenues fell by 8.7% and 3.2%, respectively, compared to Q4-19.
The Q4-20 growth of the parcel division follows on from a strong sales growth in 2020 as the e-commerce market continued to grow, pushing up volumes. For the CL division noted the decrease in port handling volumes and the exit from the shipping business disrupted sales and profit were behind the challenging quarter. The further spread of COVID-19 causing loss of sales has been attributed to the poor revenues in the Global division.
Source: CJ Logistics
*$=KRW1,212 / €=KRW1,309
